HOUSING AUTHORITY OF THE CITY OF SANTA ROSA

Council Chamber, City Hall

100 Santa Rosa Avenue, Santa Rosa, California

October 25, 2010

 1:30 p.m. 

AGENDA

1.                   CALL TO ORDER  

2.         ROLL CALL          

3.         PUBLIC APPEARANCES / PUBLIC COMMENTS:  Except for public hearing agenda items, the public may comment on all other agenda items and on items not on the agenda within the jurisdiction of the Housing Authority during this period.  The public may comment on public hearing agenda items when the hearing is opened.  Each speaker is allowed three minutes. 

4.         ACKNOWLEDGMENTS AND ANNOUNCEMENTS 

5.       STATEMENTS OF ABSTENTION 

6.       APPROVAL OF MINUTES FOR MEETINGS HELD AUGUST 23 AND SEPTEMBER 27, 2010 

7.       CHAIRMAN / COMMISSIONER REPORTS 

8.       COMMITTEE REPORTS 

9.       CONSENT ITEMS: 

9.1     REQUEST TO EXTEND THE RENTAL TERM OF A DENSITY INCREASE PROGRAM FOR-SALE UNIT – 901 RUSSELL AVENUE #129 

BACKGROUND:  The unit located at 901 Russell Avenue #129 is under the Density Increase Program (DIP), targeted to moderate income owner-occupants, with price restrictions upon sale of the home.  The Housing Authority previously approved the rental of the two (2) bedroom home to a low income household (80 percent of median income) until October 31, 2010.  Consistent with Housing Authority policy, the property owner has received administrative approval to extend the rental of their DIP targeted home for three (3) years, which necessitates review by the Housing Authority of the current request to extend the Agreement for Rental of Targeted For-Sale Unit to October 31, 2011.

          RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve a one-year extension of the temporary rental term for the unit located at 901 Russell Avenue #129 to October 31, 2011, and authorize the Executive Director to execute an amendment to the Agreement for Rental of Targeted For-Sale Unit. 

10.       SCHEDULED ITEMS: 

10.1    REQUEST TO APPROVE BURBANK HOUSING COMMUNTIES CORPORATION, AN AFFILIATE OF BURBANK HOUSING DEVELOPMENT CORPORATION AS THE OWNER AND OPERATOR OF HENDLEY CIRCLE APARTMENTS LOCATED AT 1017 ASTON AVENUE 

BACKGROUND:  Hendley Circle (Project) was developed through a partnership between Community Support Network (CSN) and Burbank Housing Development Corporation (BHDC) in 1992.  Subsequently, a limited partnership was formed to own the property and improvements.  The partnership dissolved in 2008 and CSN intended to acquire the property and improvements and continue operating the Project.  In July 2008, the Housing Authority approved a conditional reservation of funds in the amount of $100,000 to CSN to assist with the refinancing of the Project.  The conditional reservation of funds was contingent on the California Department of Housing and Community Development’s (HCD) approval of the transfer of ownership.  HCD did not approve CSN as the owner and operator of the Project.  Subsequently, in January 2010, the Housing Authority rescinded the $100,000 loan commitment.  At that time, it was conveyed to the Housing Authority that BHDC would seek approval to own and operate the Project.  BHDC is now seeking approval for Burbank Housing Communities (BHCC), an affiliate of BHDC to be the owner and operator on the Project. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve Burbank Housing Communities Corporation as the owner and operator of Hendley Circle Apartments, a twenty-eight (28) unit Single Room Occupancy (SRO) facility located at 1017 Aston Avenue. 

 10.2    REQUEST TO APPROVE THE RELEASE OF THE HOUSING ALLOCATION PLAN (HAP) CONTRACT FOR THE WOODBRIDGE SUBDIVISION, THE ASSOCIATED RESALE AGREEMENT, AND PROMISSORY NOTE TO ACCOMMODATE THE SHORT SALE OF CALIFORNIA HOUSING FINANCE AGENCY (CALHFA) FINANCED UNITS 

BACKGROUND:  The Woodbridge subdivision, located in northwest Santa Rosa, consists of 149  single family homes, twenty-two (22) of which were originally restricted to first-time, low-income homebuyers (80% of area median income), provided as part of an alternative Housing Allocation Plan (HAP) program approved by Council on June 7, 2005.  From the initial approval of the Woodbridge HAP Contract in June 2005 to October 2008, the developer, Rivendale Homes submitted numerous requests to amend the contract.  The First Amendment, and most significant, required subordination of the Woodbridge HAP Contract to California Housing Finance Agency (CalHFA) financing which, following the Housing Authority’s recommendation, Council approved in exchange for the creation of a Security Fund with monies deposited by the developer to be utilized by the Housing Authority in the event of a default or foreclosure.  To date, three (3) affordable units have been foreclosed upon which has wiped out the Woodbridge HAP Contract, the Resale Agreement, the Deed of Trust securing the Housing Authority’s in-kind loan, and exhausted the balance of the Security Fund.  Presently, two (2) affordable units at risk of foreclosure are pending short sales, one (1) of which has been approved by CalHFA and the other is pending approval.  In order to accommodate pending and future short sales, the Woodbrigde HAP Contract, Resale Agreement, and Promissory Note must be released, requiring consent of the Housing Authority and Council. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, recommend that the Council approve the release of the Housing Allocation Plan (HAP) Contract for the Woodbridge subdivision and the associated Amended Resale Restriction Agreement and Option to Purchase and Promissory Note to accommodate the short sale of California Housing Finance Agency (CalHFA) financed units.

10.3     APPOINTMENT OF NOMINATING COMMITTEE 

BACKGROUND:  Customarily, each year, the Chairman appoints a Nominating Committee for the purpose of selecting a Chairman and Vice-Chairman for the next calendar year.  This Committee usually consists of two members. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority Chairman, by motion, appoint a Nominating Committee. 

11.       COMMUNICATION ITEMS 

11.1          Monthly Activities Report 

11.2          Letter from U.S. Department of Housing and Urban Development to Mr. David E. Gouin Detailing 100% Final Score for City of Santa Rosa Housing Authority’s Section 8 Management Assessment Program (SEMAP). 

12.              ADJOURMENT 

The City of Santa Rosa does not discriminate on the basis of disability in the admissions or access to, or treatment of or employment in, its programs or activities.  Disability-related aids or services, including printed information in alternate formats, to enable persons with disabilities to participate in public meetings and programs are available by contacting the Economic Development and Housing Secretary at (707) 543-3300 one week prior to the meeting/program.

This information can also be accessed via the internet at: http://www.srcity.org